“If our efforts here are not successful, it would force us to suspend operations in California,” Zimmerman said. “Fortunately, California voters can make their voices heard by voting yes on Prop 22 in November.”
Proposition 22 is a ballot initiative that will allow voters to decide whether gig workers should be classified as employees or independent contractors. In the earnings call, Zimmerman said the majority of drivers wish to remain independent contractors. If Lyft is forced to classify drivers as employees, he said, 80 to 90 percent of California drivers and entire regions of the state would lose access to Lyft and Uber.
Of course, classifying drivers as employees would mean gig economy businesses would have to provide benefits like minimum wage, overtime, paid breaks and reimbursement for, say, personal vehicle mileage. So while Lyft and Uber brag about how independent contractors have more flexibility, there’s also a financial incentive for these companies not to hire drivers as employees.